Wednesday, February 1, 2012

Short Term Confirmed Bearish

I am late today on the blog because I was moving all day. This was my 5th move is 5 years and it's a pain in the ass every single time. However, I don't foresee moving much more for a while since I finally bought a house. For many years I believed we were in a bubble (since early 2000's) and I am glad I waited. I guess all that moving was worth it after all..

Anyway, the market couldn't trade much higher than 1320 and it reversed and this in turns confirms a bearish short term trend, which was expected. Also, it seems like the likely wave count is a complex W4 correction so I we might see some more of the same for a while before consolidating for a bull run. There is also the possibility that the market will gap up in a W3 tomorrow by looking at the waves but given the negative trend, I will go with the complex correction and expect some more downside. I am still short but I will start adding long positions soon given the fact that this is likely a short bearish correcting within a larger bull trend.

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